Federal government employees have multiple ways to quickly borrow money to help with emergency expenses or accelerate meaningful purchases.
Installment contracts such as personal loans and auto financing feature uniform monthly payments over a pre-defined period and appeal to people with reasonable borrowing credentials because the terms are often more affordable.
Payroll allotment loans are installment contracts that appeal to individuals with bad credit histories. These lenders often approve applicants without pulling a copy of their consumer report or considering their low FICO® score.
Creditors love the steady, reliable income streams and job security of federal employees: the only government employer with the ability to print money!
(Sponsored Link)
Monthly Installment Loans
Federal government employees with good or excellent borrowing credentials often find other installment loans viable alternatives. Installment contracts feature fixed monthly payments spanning six to sixty months.
The lenders in this category often perform credit checks and consider scores, which enables them to offer terms that could be more affordable in many cases.
- Longer repayment timeframes
- Lower borrowing costs
- Interest rates
- Origination fees
Personal Loans
Personal loans for federal government employees are installment contracts that rely on your signature promise to repay the obligation according to terms. In other words, the arrangement is unsecured; you do not have to pledge collateral.
Request a personal loan here. (Sponsored Link) If approved, the lender will quickly deposit the funding into your checking account. Allow auto drafting to repay the lender in equal monthly installments to avoid late charges and delinquencies.
If you default on a personal loan, the lender has nothing to repossess because your signature backs the installment contract. The company must file a lawsuit and obtain a judgment to garnish wages or place a lien against your property.
Auto Loans
Auto loans for federal government employees are installment contracts that use the equity in your vehicle as collateral. The lender relies on the legal right to repossess your car after default to minimize losses – instead of a signature promise to pay.
Request an auto loan here. (Sponsored Link) If approved, the finance company will send the funding to the dealer so you can purchase the car and drive it home. Repay the lender in equal monthly installments drafted directly from your checking account.
Auto title loans are another form of secured installment contract that you can utilize for emergency needs. However, you must possess a clear title (owe nothing to another car finance company) to take advantage.
Postal Workers
Postal workers often qualify for installment loans through payroll deduction even though they are not federal employees. Although its personnel qualifies for government benefits, the USPS runs as a self-governing agency without taxpayer funding.
Postal employees can obtain an installment loan with an allotment from payroll or their checking account. However, those set up directly through the PostalEASE system might be easier without a credit check.
USPS allotment loans through PostalEASE appeal to employees with bad credit because lenders prefer being first in the repayment pecking order. Postal employees with adverse histories on their consumer reports need every advantage.
Payroll Deduction Loans
Federal employee payroll deduction loans put repayment on autopilot. Lenders are more willing to approve applicants when they allot (designate) an amount from their paycheck – notably when funded by a trustworthy third party: the government.
The lender withdraws funds directly from your payroll account every two weeks to repay the obligation – before you have a chance to spend it elsewhere.
No Credit Check
Federal government employees can often get payroll allotment loans quickly without a credit check. These lenders forgo traditional scores calculated from Equifax, Experian, or TransUnion data when underwriting decisions.
Instead, they rely on alternative ways to minimize default risk without a credit check from conventional sources.
- Base loan eligibility on employment more than credit score: the allotment amount deducted is sufficient to cover the bi-weekly payment.
- Tap into non-traditional bureaus that provide public record data (bankruptcies, judgments, liens, etc.) and other payment history information.
Like BMG Money
Many federal government employees search for payroll allotment loans like BMG Money because they do not fit their criteria or want to shop for better terms without a credit check.
- BMG Money cannot approve every applicant, and you might fall into this category for several reasons.
- Employed by the federal government for less than one year
- Currently in bankruptcy
- Under 18 years of age
- Active in the military
- BMG Money may not lend to employees working in up to 183 different federal departments that do not participate in their program.
- 450 on their approved list
- 633 agencies total per usa.gov
- BMG Money is not licensed to operate in every state; many federal employees live in these regions. For example, people who reside in northern Virginia and commute to Washington, DC, might not qualify.
- BMG Money is a subprime lender, meaning it might charge more (origination fees and interest rates) or offer shorter repayment terms because it does not perform a credit check. Therefore, people with good borrowing qualifications could find better deals elsewhere.
Like Kashable
Federal employees might search for allotment loans like Kashable to find a payroll deduction option without a credit check. People with adverse history on their consumer reports might ask this question.
Kashable allows you to “check your rate” without impacting your credit score using a soft pull. However, if you continue with the application, a hard inquiry will appear on at least one consumer report from Experian, Equifax, or TransUnion, which could hurt your score.
Payday Loans
Payday loans are payroll-deducted, and federal government employees can qualify without a credit check. However, they have key differences that make them an inferior alternative to allotment contracts with longer repayment terms.
| Payday | Allotment | |
| Interest charges | No | Yes |
| Origination fees | Yes | Yes |
| Repayment terms | 2 to 4 weeks | 6 to 36 months |
| Rollover option | Yes | No |
| Draft from paycheck | Yes | Yes |
| No credit check | Yes | Yes |
| Bad credit OK | Yes | Yes |
Most payday loans do not charge interest but do have hefty origination fees. Borrowers get into trouble when they roll over the obligation during the next pay cycle, and the one after that, etc. The origination fees add up quickly when you do not repay the entire balance in a short period.
Therefore, payday loans make sense only when allotment arrangements are not an option to fund emergencies such as car repair, medical expenses, or legal fees.
- Newly employed at a federal job
- Currently in bankruptcy
- Working at a non-participating agency
- Living in a non-licensed state that allows cash advances
- Virginia
- Wisconsin
- Nevada
- Indiana
Bad Credit
Federal government employees with bad credit and low scores frequently find that payroll deduction loans help their chances of approval.
Mainstream lenders shy away from people with adverse payment histories on their consumer reports and frequently decline these applications. You need to overcome insufficient borrowing qualifications somehow.
- A bad debt-to-income ratio hurts your approval odds. However, lowering the monthly payment makes the transaction affordable, and you have three levers.
- Request small amounts (something you control)
- Keep interest rates low (unlikely with poor qualifications)
- Extend the repayment terms (rarely feasible with bad credit).
- Payroll allotment loans help overcome lousy credit history by prioritizing repayment over other everyday expenses such as housing, food, transportation, utilities, and entertainment. The lender gets their money before you can spend it in these areas.
